HOUSE DOCKET, NO. 464        FILED ON: 1/13/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 915

The Commonwealth of Massachusetts

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PRESENTED BY:

Frank A. Moran

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to automobile insurance rates.

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PETITION OF:

HOUSE DOCKET, NO. 464        FILED ON: 1/13/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 915

The Commonwealth of Massachusetts

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In the One Hundred and Eighty-Ninth General Court
(2015-2016)

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An Act relative to automobile insurance rates.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 113B of chapter 175 of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by striking out, in line 41, the words “or territory”.

SECTION 2. Said section 113B of said chapter 175, as so appearing, is hereby amended by striking out the fifth paragraph and inserting in place thereof the following paragraph:-

In fixing and establishing classifications of risks, the commissioner shall not group risks by sex, marital status or geographical location, and shall not group risks by age except to provide the reduction in rates for insureds age 65 years or older required by this section. For purposes of this section, “geographical location” shall mean any geographical area located within the commonwealth including any area that may be identified by zip code.

SECTION 3. Said section 113B of said chapter 175, as so appearing, is hereby amended by adding the following paragraph:-

The commissioner shall not fix or establish any private passenger motor vehicle insurance rates, premium charges, premium adjustments or classifications of risks based, in whole or in part, on geographical location.

SECTION 4. Subsection (C) of section 113H of said chapter 175, as so appearing, is hereby amended by striking out the eighth paragraph and inserting in place thereof the following paragraph:-

To control the size of the population of the plan, the plan shall annually provide for classification credits for those companies voluntarily writing private passenger automobile insurance within those classifications that would otherwise be disproportionately represented in the plan. The size of the credits shall be such as to enhance the prospects that no classification is disproportionately represented in the plan.

SECTION 5.  Section 1 of chapter 175E of the General Laws, as so appearing, is hereby amended by adding the following definition:-

“Geographical Location”, any geographical area located within the commonwealth including any area that may be identified by zip code.

SECTION 6. Subsection (a) of section 4 of said chapter 175E, as so appearing, is hereby amended by inserting after the first paragraph the following paragraph:

In connection with private passenger motor vehicle insurance, rates shall not be based, in whole or in part, on geographical location.

SECTION 7. Said section 4 of said chapter 175E, as so appearing, is hereby amended by striking out, in line 22, the words “in the area”.

SECTION 8. Subsection (d) of said section 4 of said chapter 175E, as so appearing, is hereby amended by striking out, in lines 55 and 56, the words “which shall include a designation of not less than fifteen territories”.

SECTION 9. Said subsection (d) of said section 4 of said chapter 175E, as so appearing, is hereby further amended by striking out the fifth paragraph and inserting in place thereof the following paragraph:-

For motor vehicle insurance rates, risks shall not be grouped by sex, marital status or geographical location and shall not be grouped by age except to produce the reduction in rates for insureds age sixty-five years or older required by this clause.

SECTION 10. Section 5 of said chapter 175E, as so appearing, is hereby amended by striking out, in line 4, the words “to any territory or”.

SECTION 11. Said section 5 of said chapter 175E, as so appearing, is further hereby amended by striking out, in line 10, the words “or territory”.

SECTION 12. Section 6 of said chapter 175E, as so appearing, is hereby amended by striking out, in line 3, the words “, in any territory,”.

SECTION 13. Said section 6 of said chapter 175E, as so appearing, is hereby further amended by striking out, in lines 16 and 21, the words “in any territory or”.